AN EXAMINATION OF THE LAW, ISSUES AND CHALLENGES OF THE OPERATION OF LEASES IN NIGERIA

Abstract

Leases are an essential component of property rights and commercial transactions in Nigeria, governed by statutory and customary laws. This study examines the legal framework regulating leases, identifies key issues affecting their operation, and explores potential solutions. The objectives of the study include analyzing the existing laws on leases, identifying challenges such as legal inconsistencies, informal leasing practices, and dispute resolution inefficiencies, and proposing reforms to improve lease
administration in Nigeria. The research adopts a doctrinal methodology, relying on primary legal sources such as the Land Use Act of 1978, state tenancy laws, and judicial precedents. It also incorporates a comparative analysis of lease regulations in other jurisdictions and empirical data from
case studies and interviews with legal practitioners. Findings reveal that the lease system in Nigeria is hindered by unclear land tenure policies, weak enforcement of lease agreements, high transaction costs, and delays in dispute resolution. Many lease transactions occur informally, lacking proper documentation, which leads to conflicts and legal uncertainty. Additionally, corruption and inefficiencies in land administration further complicate lease operations. The study recommends reforms such as the harmonization of lease laws across states, the digitalization of land records to enhance transparency, and the establishment of specialized lease dispute resolution mechanisms, will contribute to a more efficient, transparent, and equitable leasing system in Nigeria.